Saturday, February 9, 2019

The Slow Season

The first batch of weekly data from the IRS offers a very preliminary, unrepresentative look at what’s happening to taxpayers using the new tax system, which increased the standard deduction, lowered rates, and curbed some deductions. Typically, early filers are those who expect significant refunds, while those who owe money file closer to the mid-April deadline.

The picture will become clearer later this month, as tens of millions more returns are processed. The IRS is required to withhold certain refunds containing the earned-income tax credit and child tax credit until Feb. 15. The IRS, which had been partially shut down in the run-up to filing season, says it is running smoothly so far.